Buying a Home in Salt Lake City, UT

Homebuyer Representation, Inc. offers a free consultation to home buyers.

What does it mean to consult an Exclusive Buyer's Agent? A consultation is a one-time meeting to get any of your real estate questions answered and to find out what it would take to buy a home. The meeting can be in person or over the phone.

It doesn't mean that you have to hire the agent to represent you, or even hire an agent at all.

You should come away from the consultation with enough information to answer these questions:

• Does it make sense to buy vs. rent?
• Is what I'm willing to spend enough to buy a house I would be happy to live in?
• Do I have a large enough down payment to buy a home? 
  and
• How do I find out if I have enough, or good enough credit to buy a home?

Depending on the answers to these questions, you might be ready to move forward.

Thinking about buying a home in the Salt Lake City, Utah area in 2012?

Call us at (801) 969-8989 or contact us via the link on this page for a free consultation today.

©2012 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM 

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

For more information, or if you are relocating to another state, visit GetYourOwnAgent.com

I attended the 2012 Salt Lake Housing Forecast Meeting this morning. The two presenters this year were Eric Belsky, Managing Director of the Joint Center for Housing Studies at Harvard University and James Wood, director of the University of Utah’s Bureau of Economic and Business Research. While Mr. Wood's remarks were pointedly local, Mr. Belsky's report covered the state of the housing market nationally, with concluding remarks to show where Utah stacks up among the states.

The expectations? Cautiously and realistically optimistic. Realistically meaning that while there were no bold statements of certain recovery, the outlook is that things are more likely to get better than worse based on the indicators. A remark made by Mr. Belsky sums it up well: "If someone keeps hitting you in the head and they stop, it feels good." Barring any "unpleasant surprises," Utah is poised pretty well to begin a slow recovery.

While everybody knows that economics primarily deals with supply and demand, there are many factors that influence both suppliers and consumers. This is true in every industry including real estate. 

I noted 16 influencers referenced by the economists that play a part in housing decline or improvement:

1. Job Growth (New Jobs)
2. Unemployment Rate 
3. Consumer Confidence (Spending)
4. Household Growth (# of households needing independent housing)
5. Home Prices
6. Price to Income Ratio
7. Price to Rent Ratio
8. Household Debt relative to Income
9. Inventory
10. Homes Sold
11. Housing Starts
12. Mortgage Interest Rates
13. Mortgage Availability (Underwriting Rules)
14. Foreclosures and Distressed Properties
15. Underwater Homeowners
16. Buyer Urgency

I'll try and talk about each one briefly.

1. Job Growth

According to Mr. Wood, Utah is adding 30,000 new jobs per month. Utah is #4 in the nation in new job growth. This is positive for the Utah housing market.

2. Unemployment Rate 

While not the best in the country, Utah is doing better than many states regarding unemployment. A national problem which hinders a recovery in the housing market is that the unemployment rate for people in their 20s is double that of the unemployment rate for others. This leads to many fewer first time buyers, who traditionally help fuel growth in the housing market.

3. Consumer Confidence (Spending)

Consumer spending is rebounding, but the question remains whether it is sustainable. Disposable income is falling for many Americans.

4. Household Growth (# of households needing independent housing)

Household growth has slowed due to "doubling up" and a slowdown in immigration. It is believed that there are 2.5 million homeowners "doubled up" instead of buying or renting. There are signs of household growth improving, especially in Utah as more people are moving in than are moving out.

5. Home Prices

Home Prices are down in Utah... 25% from the peak! Mr. Wood expects an overall decline of another 3-5% across the state, with some areas doing better and some doing worse. Mr. Belsky noted that home prices grew more than incomes from 2000-2006, but the falling market has corrected both pricing and available units for sale.

6. Price to Income Ratio

Mr. Wood said that the median home price is only 3.5 times of the median income in Utah. While economists would like to see the median home price closer to 3 times the median income to indicate a healthy market, affordability in Utah is pretty good. A buyer with the median income could have afforded to buy 70% of the homes sold last year according to Mr. Wood. Nationally, the median existing home price to per capita income is currently at record lows dating back to 1975 when data started being collected.

7. Price to Rent Ratio

As homeownership costs get closer to the costs of renting, more people will opt for homeownership. It was stated that rents in large apartment properties are on the rise at a rate of about 4%. 

8. Household Debt relative to Income

Household debt is falling relative to income, but there is still "a long way to go".

9. Inventory

Inventory is on the decline in most areas of Utah. An average of about 4-6 months supply. That's pretty healthy and better than many states.

10. Homes Sold

Mr. Wood expects a 20% increase in the number of homes sold for 2012 over 2011. This would be an estimated 11,000 homes sold in 2012, down from the "unsustainable peak" of 15,000 homes sold in 2006.

11. Housing Starts

Building permits are up. 1300 new homes were sold in 2011 and it looks like more will be sold in 2012. Builder's unsold inventory is virtually non-existent. (spec homes)

12. Mortgage Interest Rates

Mortgage interest rates are very low. Under 4% for most buyers. I've pointed out before, however, that unless a buyer has a large down payment, increased mortgage insurance premiums erase some of the savings.

13. Mortgage Availability (Underwriting Rules)

Mortgage guidelines have tightened significantly either scaring buyers out of the market or literally shutting them out. Down payment requirements are higher, credit score requirements are higher, applications are being underwritten with more scrutiny. Neither economist expects this to change anytime soon.

14. Foreclosures and Distressed Properties

Utah is still up at the front of the pack in percentage of foreclosures. Delinquencies are slowing... notices of default fell 28% in 2011, but Utah is #5 in the nation with number of mortgage delinquencies. Foreclosed and distressed properties put downward pressure on home prices.

15. Underwater Homeowners

Move-Up buyers create inventory for first time buyers. With 19.7% of owners in Utah underwater, this puts a drag on housing recovery.

16. Buyer Urgency

Only 39% of renters said they were likely to buy in the next 3 years. Still, 70% stated that owning makes more sense than renting and 55% stated that now would be a good time to buy. The issue for most: the timing isn't right, they aren't sure if they would qualify for a mortgage or they don't have the sufficient down payment saved up yet. So long as they have an alternative option, many buyers will keep doubling up or renting until THEY are ready or until they feel like if they don't move soon, the opportunity may pass them by.

If you would like a pdf copy of the Housing Forecast or of Mr. Belsky's presentation, just call or shoot me a message.

Thanks!

• Are you thinking about buying a home in the Salt Lake City, Utah area?
• Do you have excellent credit?
• Do you plan to purchase a $250,000-$750,000 home within 90 days?
• Do you have a good down payment, or are you paying cash for your next home? 

If so, you deserve someone on YOUR side of the transaction! 

Call us at (801) 969-8989 or contact us via the link on this page for the best in representation for buyers of residential real estate.

©2012 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

For more information, or if you are relocating to another state, visit GetYourOwnAgent.com

I have been meaning to draft this document for a while, and finally put it together in response to a conversation I had with a potential client last week.

My commitment to you:

1. I will be your Exclusive Buyer Agent (EBA). Because our company does not take listings or ever take on sellers as clients, we will never ask you to agree to less than 100% representation.

2. We will not "switch teams" or change allegiance mid-transaction. You will start with an EBA and you will end with an EBA.

3. I will ALWAYS take YOUR side in negotiations.

4. I don't have any interests in any mortgage, title or inspection companies. There are no financial incentives for me to steer you to any "in-house" vendors.

5. I specialize in working with buyers. I don't switch hats from sellers to buyers. I am ALWAYS focused on what is best for the BUYER in the transaction.

6. I am a Certified Negotiations Expert (CNE). I stay current on training. In just a few weeks I'm flying to San Antonio, TX to take a full-day course on Advanced Negotiation Techniques for Buyer Agents.

7. I will be your consultant, not a salesperson. Because I list no homes, I have no "inventory" to sell. I have no properties that I'm legally obligated to promote to buyers. An agent or company with listings cannot make this claim.

8. I contract directly with you for my fee. If any other party is offering any compensation to our brokerage, I will credit that toward what you owe. Because I know I will get paid in full, I will not steer to you to homes where there is more compensation being offered to buyer agents and I will not steer you away from homes where less (or no) compensation is being offered.

9. You will not double pay for the service you receive. If you buy a home where less or no compensation is being offered, we will lower our estimate of value accordingly. 

10. I will not make more than we contractually agree on. If compensation from another party exceeds the amount we have agreed upon, Homebuyer Representation, Inc. will rebate the difference to you within two weeks of closing.

11. We pass "bonuses" or incentives on to you. If there is a bonus being offered to our brokerage above normal compensation, you can choose to credit that toward your fee or have us pass the bonus on to you in the form of a rebate within two weeks of closing.

12. There is never any chance for me to be influenced by the temptation of receiving a "double commission" or agent "bonus."

13. I will tell you everything I learn about a seller or a property that will help you in negotiations or that could influence your decision to move forward with a transaction or that could change your opinion of the value of the property.

14. I will keep information that could damage YOUR negotiating position confidential.

15. I will use legitimate comparable sales when determining an estimated market value for the home. I will not simply choose the homes that justify the seller's asking price.

16. I may advise you to walk away from negotiations with a seller. Walking away could lead to a better outcome.

17. If it is in your best interest, I will help you take your transaction apart and I will protect your interests while doing so. My goal is to do what is in your best interest... my goal is not "closing the deal."

18. I will show you any available properties you wish to see.

19. I promise full & exclusive representation on any home you wish to buy, not just homes listed by other companies.

20. I will educate and guide you through the process, but all decisions will be yours. I will obey any lawful instructions you give me regarding your transaction.

21. You will always control the price range of homes we consider. I will not try to convince you to raise your price range. If anything, I have been guilty of talking some clients into a lower price range.

22. Although I am not a professional home inspector, I will point out any flaws I see with properties and not just focus on the benefits.

23. I will advise you to talk to neighbors during the due diligence period. If you desire, I will go with you.

24. I will assist in putting you in contact with appropriate professionals to help with your due diligence if desired.

25. I will help you buy with resale in mind. I have shown many thousands of homes to hundreds of buyers. Based on my experience, I will point out to you floor-plan, location and other issues that may negatively impact resale value or the ability to find a buyer down the road.

26. I will try and help you save as much money as possible when you buy so you will make that much more profit when you someday sell.

27. If you wish, I will help you correctly "shop" lenders and evaluate their proposals and offerings. I will prepare an analysis that will show you the total cost of each loan. We typically save our clients 1% of the purchase price (up front) on this analysis alone. Over the life of the loan, clients usually save many times more. Although I will provide a few lenders I believe you should shop, I want you to provide me with some options of your own. This keeps the best lenders honest, knowing they are competing for your business each time we contact them.

Above all, I commit to put your best interest first in your transaction.

Benjamin D. Clark
President & Principal Broker
Homebuyer Representation, Inc.
Salt Lake City, Utah
(801) 969-8989
www.GetYourOwnAgent.com

Certified Negotiation Expert (CNE)
Certified Exclusive Buyer Agent (CEBA)
Accredited Buyer Representative (ABR)
Graduate REALTOR Institute (GRI)
Officer - National Association of Exclusive Buyer Agents
Member - National Association of Exclusive Buyer Agents
Member - Salt Lake Board of REALTORS
Member - Utah Association of REALTORS
Member - National Association of REALTORS
Author - BuyingAHomeInSaltLakeCityUtah.com

"My Commitment to You" ©2012 Homebuyer Representation, Inc.

I'm not trying to scare anybody off, Utah is a great place to live. But you may as well know before you move here that Utah is earthquake country.

I was talking to a potential new client today who is relocating here from the east coast. In conversation I brought up earthquake insurance and the prospect asked: You have earthquakes there?

Well, we don't have too many, but we are one of the 5 Most Dangerous U.S. Earthquake Hot Spots Beyond California. (Wired Magazine)

Image: US Geological Survey

If you want to research the topic, here is a link to the University of Utah Seismograph Station's website where they have some Utah Earthquake FAQs: http://www.seis.utah.edu/qfacts/utfaq.shtml

And here is information from the Utah Geological Survey: http://geology.utah.gov/utahgeo/hazards/eqfault/eqfact.htm

I've lived in the Salt Lake Valley for the past 15 years and I've only felt one or two earthquakes that I can remember and they were very minor. Most people didn't even notice them. But experts say we are due for a "big one" soon.

From 2004 to 2007 the Utah State Capitol underwent a historic restoration and a seismic upgrade whick included the installation of a base isolation system that allows "the building to survive as much as a 7.3 magnitude earthquake." http://en.wikipedia.org/wiki/Utah_State_Capitol

Not many agents would blog about this, but in the interest of full disclosure, if you are moving to Utah, you might as well know.

I'm looking forward to the 2012 Salt Lake Housing Forecast Breakfast on Wednesday, January 18th. Eric Belsky, Director of the Joint Center for Housing Studies at Harvard University will present on the key factors crucial to supporting a housing and economic recovery in Utah and the nation.

James Wood, Director of the University of Utah's Bureau of Economic and Business Research will also be presenting the 2012 Salt Lake housing forecast.

In addition to being informative, these forecast meetings are really fun to go to. Given that the presentation is given to 500 Realtors, you know the "spin" on the data will always be: "And that's why NOW is the perfect time to buy or sell your house." I'm chuckling already just thinking about it.

The truth about whether or not to buy or sell a home NOW requires an assessment of the individuals' situation and options. Still, for those who are thinking about buying or selling, knowing the current economic trends and how they potentially affect the housing market in the near future can help one decide whether to take action now or wait another 4-6 months.

The good news I'm expecting to hear is that Salt Lake leads most of the nation in having those "crucial" factors that support housing and economic recovery.

I'll report back after the event. In the meantime, if you have any questions about buying a home in Salt Lake, just pick up your phone and give me a call.

Thanks!

I'm currently serving as the Secretary for the National Association of Exclusive Buyer Agents and prior to the upcoming annual conference I'm taking another negotiations course in Texas. The course, titled "Advanced Negotiation Techniques for Buyer's Agents" will help me develop effective negotiations plans for my clients and negotiate more effectively on their behalf.

Although I earned the Certified Negotiations Expert designation years ago and I regularly read books and articles on effective negotiating, and although I successfully negotiate for numerous buyer-clients each year, I'm excited to pick up a few more tips and tools, brush up on my skills and remember a few things I may have forgotten.

Each transaction and the people involved are unique so it's important to review proven techniques and have all the tools prepared for when they are needed.

Some of the topics will include:

• Emotional factors of negotiations
• Irrational negotiators
• Negotiating from a position of weakness
• Creating additional value in your offers and counteroffers
• Handling difficult negotiations
• Advanced persuasion techniques

Negotiating great deals for my buyer-clients is one of the things I love most about my job! I'm excited to come home an even greater value for my clients!

Builder Magazine ranks Salt Lake City, Utah as having the third healthiest housing market in the U.S.

Good things happening in the Salt Lake City metropolitain area:

• Income growth next year is expected to be one of the best in the country.
• Job growth this year was 2nd best in the country. (Over 35,000 new jobs last year)
• Population continues to grow.
• New companies in a variety of sectors keep moving to town.
• We have some great colleges, universities and tech colleges in the area.
• Residential building permits are up 16% (Salt Lake REALTOR Magazine, Nov 2011)
• Residential home prices are lower in all but 6 cities in Salt Lake County.

My Exclusive Buyer's Agent took me on as a client when he was busy with other personal things and yet he was one of the most professional people I have ever worked with.

He went the extra mile to help me find what I was looking for every time.

He never pushed me into anything that I was not sure of. Even when I had made an offer on a place and had it accepted he checked further into one troubling aspect and gave me the information and let me make the decision which was to withdraw the offer. It was something that could have been very costly in the future to me. Many agents would not have bothered as there was already a deal in the works.

I would recommend him to anyone who is in the market to buy a home.

Donna
West Jordan, UT 

If you are considering a home purchase in Utah, don't buy without an agent on your side!

Don't buy without an EBA!

My last blog entry was a testimonial from me about my new dentist. What does that have to do with buying a home? Lots.

Everybody should know about biomimetic dentistry and doctors like Dr. Noot. I really connected with him and his practice because:

1. He really cares about what is best for his patients.

2. He takes the time to educate his patients about what is going on.

3. He lets the patient make the important decisions regarding their care.

4. He has gone the extra mile in his personal training and education in order to provide his patients with the highest level of professional services.

5. He not only pays attention to detail, but uses a microscope to see details most traditional dentists completely ignore so they can quickly move on to the next patient.

6. He makes every effort to make his patients comfortable and calm and to make the process as stress-free and pain-free as possible.

7. He takes his time to do it right. He is not in a rush to finish the procedure.

8. He is flexible with his techniques, tailoring his approach to each patient's unique situation.

9. He costs a bit more, but saves you significantly more than his additional cost, both financially and otherwise.

10. For those who have discovered biomimetic dentistry, anything less would just be foolish.

Likewise, everybody should know about Homebuyer Representation and Exclusive Buyer Agency because:

1. I really care about what is best for my clients.

2. I take the time to educate my clients about what is going on.

3. I let my clients make the important decisions in their home search and purchase.

4. I have gone the extra mile in my personal training and education in order to provide my clients with the highest level of professional representation.

5. I not only pay attention to detail, but I'll make you aware of options available to you in your transaction that most traditional agents completely ignore, just to get your transaction to close.

6. I make every effort to make my clients comfortable and calm and to make the process as stress-free and pain-free as possible.

7. I take the time to do it right. I will not rush you if we aren't finding the right property for you.

8. I'm flexible with my techniques. I will tailor my approach to each client's unique transaction.

9. I cost a bit more. But I save you significantly more than the additional cost, both financially and otherwise.

10. For buyers who have discovered Exclusive Buyer Agency, anything else would just be foolish.

Our brokerage gives 100% loyalty to buyer-clients at all times. We don't list homes or represent sellers. We do not ask clients to lower their level of representation from 100% to 0% in order to double-dip the transaction. We remain committed to your best interests throughout your transaction, even when that means protecting your interests while getting you out of a transaction.

If you are considering a home purchase in Utah, don't buy without an agent on your side!

Don't buy without an EBA!

I was talking with a cousin one evening and it came out in conversation that I was going in for a root canal that week. He asked me if I had heard about Biomimetic Dentistry. I had not. He explained how it was far superior to the average dentist's "drill and fill" philosophy. He told me I should go see Dr. Noot first because there was a good chance Dr. Noot could save my tooth without a root canal.

My current dentist had just filled that tooth a few days earlier. During the 15 minute procedure he stated, "I may have gone a bit too deep. It might be fine, but if you start to feel any really bad pain, you may need to come back for a root canal." (And, of course, a crown.)

It wasn't long before I was in constant, extreme pain. It felt like something was loose inside my tooth whenever I bit down on anything. I consulted with my current dentist and without any additional analysis he said a root canal was the solution.

I met Dr. Noot and his team the evening before I was to go in to have the root canal at my current dentist. Dr. Noot took me in on short notice and took care to explain how his tooth-conserving methods and goals were different from most traditional dentists'.

Here are seven examples of this philosophy in action from my experience:

1. Dr. Noot uses very small tools and a microscope when he does his work, with the intent of saving as much of the natural tooth as possible. He also captures the whole procedure on a monitor in the room so his staff can more actively participate.
   
   
2. Dr. Noot took high-definition photographs of the actual teeth and showed me the problem areas on a large monitor. This made me feel respected and I felt confident in the procedure without having to blindly take his word that there were problems. Because I was more involved, I was more comfortable with the work being done.
   
   It was interesting to have him pause and take photographs throughout the process, but I really appreciated it as it allowed me to "trust, but verify" the problem as well as the quality of the work that was done. Instead of being at his mercy to take his word for it, I was able to see the issues and the results with my own eyes. His photos clearly showed the problem areas caused by my previous dentist. Because of this, I'm confident stating that biomimetic dentistry is far superior to the standard practices espoused by the majority of dental professionals.
   
   
3. Dr. Noot and his assistants don't rush the procedure. They waited a longer period of time for the injection to set in meaning less injections and almost zero pain. (Yes, he only had to inject once.) They do everything they can to ensure that the patient avoids any unnecessary pain or post operative trauma.
   
   
4. Prior to re-filling the tooth, Dr. Noot etched the tooth so the filling would bond. (The loose feeling that was causing so much pain was due to the fact that the filling my current dentist had put in just days before was not even bonded to the tooth.)
   
   
5. As he filled the tooth, he filled one small layer at a time, hardening each layer with a lower-level light than most dentists use, allowing it to cure more slowly. This takes more time than the traditional filling, but it eliminates common problems that can arise from traditional filling methods. Many dentists use a few big blobs of filling and harden them really quickly with a high powered light. This is much faster, but the process causes the filling to shrink, leaving gaps between the filling and the tooth. (I saw these gaps clearly in the "before" photo of my tooth.) Since most dentists don't look at high resolution images of their work, let alone perform the procedures through a high powered microscope, these gaps either go undetected, or are considered "normal" and "acceptable" in the profession.
   
   
6. Dr. Noot's technique creates a harder, stronger, natural looking filling, with no gap between the tooth and the filling. He verifies this with the microscope as he works and he sat with me after the work was done to show me the high resolution photographs he took during the procedure. There was no gap between his filling and my natural tooth.
   
   
7. Since the procedure I have had no pain or sensitivity to hot or cold. I'm certain that Dr. Noot saved my tooth and saved me from having an unnecessary root canal and crown, which would have been expensive.

I have no plans to return to my original dentist. Dr. Noot's work is far superior. I'm sure his transparency with patients and the virtually painless experience due to the methods he employs all but eliminate any anxiety his patients may have previously had about going to the dentist.

I realized huge savings by not needing to have unnecessary and very expensive work done, work that most dentists would have considered the recommended next course of action. Dr. Noot's record and reputation prove otherwise. They prove that Biomimetic Dentistry should be the only acceptable choice in dental care.

Dr. Arnoud Noot's office is in American Fork, UT.
Find Dr. Noot at www.drnoot.com

U.S. Housing and Mortgage Trends

(Source: October 2011 report by CoreLogic)

• The homeownership rate is down... almost 10% compared to the homeownership rate in 1980.
• The median household income is down... (lowest level since 1996)
• Both renters and owners are spending a greater percentage of their income on housing costs (over 1/3 of their income for both groups.
• Renters are generally paying 5.2% more of their household income toward housing expenditures than homeowners.
• 66% of foreclosed properties became REO, i.e. Real Estate Owned ("bank owned")
• More investors are skipping the foreclosure auction in favor of buying the REO homes directly from the bank. Sales at foreclosure auction generally require the investor to pay cash.

Utah Housing and Mortgage Trends

From the State Summary on page 8 of the CoreLogic Report. (NOTE: In addition to the 50 States, the report also included the District of Columbia)

• Total Sales Year over Year are up 24.3% according to the report. This is 11th best of states reported.
• Ranks 39th in decline of REO sales. There are 3.6% more REO sales (bank owned homes) this year compared to last in Utah, with 24.7% of total sales being distressed sales according to the report. North Dakota ranked #1 in this category with 59.3% less REO sales compared to the previous year with only 2.4% of total sales being distressed sales. Wyoming had 63.7% more REO sales than the year before and 12.2% of total sales were distressed sales.
• There were 35.8% more short sale closings than the year before.
• According to the report, 21% of homeowners in Utah have negative equity (owe more than their home is worth). The good news, I suppose is that 79% of homeowners in Utah still have some equity. 61% of homeowners in Nevada are underwater (the highest % of the states on record in the report) while 94.1% of homeowners in West Virginia still have positive home equity according to the report.
• Perhaps some of the best news according to the report is that Utah only has 4.6 months of supply of distressed homes.

If you are considering a move to Utah, don't buy without an agent on your side! Hire an EBA!

Prior to working with an EBA, we had been involved in four other real estate purchases and three sales and had developed some skepticism toward realtors in general.  This most recent move was our first that wasn’t just to another part of town.  This time, we were to move ourselves, our five kids, our dogs and our cats 300 miles.  We wanted to make sure we had an agent we could rely on.  We shopped extensively and even spoke to a few agents before we found Homebuyer Representation on the web. 

We felt good about working with our EBA from the first conversation.  He directed us to a website that was very helpful in locating the type of home we were looking for.  We identified a number of houses we were interested, and he found others that fit into the same parameters.  Before we even met him in person, our agent had made contact with the listing agents for the homes.  When we arrived in the Salt Lake area, he had the day mapped out.  He was always very organized and had done his homework.  He knew all about each home and had written extensive notes based on his conversations with the listing agents and his own research.  Working with him was a pleasure from day one.  He has a pleasant personality and he always goes the extra mile.  Not a minute of our time was wasted as we looked for our home.

Fortunately our EBA is a patient guy. After looking at many existing homes, we started to become interested in having a new home built.  He arranged meetings with builders and appointments at model homes.  We looked at a number of developments and floor plans.  We finally found a lot, a floor plan and a builder that we really liked.  We had a meeting with the builder and started making plans.  Everything looked like it was going along great until we discovered that the economic conditions had deteriorated to the point that our builder was unable to obtain financing for the project.  We concluded that the deal was good enough that we would endeavor to secure our own financing rather than look for a larger builder.  This turned out to be a feat that neither of us had anticipated.

Our exclusive buyers agent was always there orchestrating communication between the bank, the builder, the credit union and us.  Just as we thought we were finally about to close, we learned that the bank (which would be providing the fixed mortgage) had made some mistakes, and that they would not be able to complete the loan.

We were crushed.  Not only had we had our hearts set on a certain house and lot, but we had spent over three months grinding through the process.  We also should mention that there were several periods of frustration when we wanted to give up on the whole ordeal.  Our EBA was very accommodating and took us around to look at other houses and even introduce us to other builders.  Even though we were very fickle at times, he stuck with us and always went the extra mile.

Although we thought our chance at the house we had picked out was gone, our EBA had spoken with the representative at the credit union.  We had been led by the big bank to believe that the construction loan would only be funded if the permanent financing was done by that particular bank.  Our agent found out that it did not matter where our long term mortgage came from, so he introduced us to a wonderful lender (whom we would also recommend in a heartbeat). He gave her the information, and she said she could make it happen.  In a relatively short time we went from being back to square one to being right back on track.  The rest of the process was painless.  Before we knew it, the loan was funded and our lot was being excavated.  We had not only gained a great new friend, but through his efforts, a transaction that would have otherwise been lost was brought back from the dead.

Even after all that, our EBA was not finished.  He was there throughout the entire construction process.  He helped facilitate various changes and additions to the plans.  He helped settle some minor disputes between us and our builder regarding contractual items. 

As a side note – our purchase contract was very well written.  The Exclusive Buyers Agent we worked with is a very thorough person and ensures that the proverbial I’s are dotted and T’s are crossed.  At the completion of our home’s construction, he conducted walkthrough inspections with us and the builder.  He helped us put together a final punch list and followed up to ensure the items were actually completed.

He arranged the closing and prepared us very well, so there were no surprises at the closing table, unlike some of our other real estate experiences.  Even though he had gone well beyond the call of duty, after our closing, he presented us with wonderful gifts to celebrate our new home.  We were touched by his consideration and professionalism.

In our prior home and land deals, we went away feeling that the real estate agents did relatively little for the amount of money they collected from the transactions.  This was NOT the case with our EBA.  He earned every penny of his commission and then some.  Ours was a very long and difficult transaction, this brief narrative barely scratches the surface.  We had high expectations, and he exceeded them. 

We would enthusiastically recommend our EBA and Homebuyer Representation to anyone looking to buy a home in the Salt Lake City area.  He works diligently and honestly.  Though our transaction was a difficult one, it turned out well in the end because of his hard work and dedication.

Thank you Homebuyer Representation! 

Tyler & Esther
Vice President - Tech College
Lehi, UT

Our Exclusive Buyers Agent (EBA) was a pleasure to work with because of his laid back, no-pressure approach. His only motivation was to help us find the right house for us, not to sell a home.  He never pressured us to consider a home we were not interested in. Rather, he suggested we see many homes so we could figure out what we actually wanted, and what we did not want. When we had a disagreement on which house we liked better, he made sure to let us come to our own conclusion. We are very happy with how it turned out, and neither of us have any regrets.

Our EBA was very knowledgeable about what aspects of a home to look out for. Things we would have not thought to check for (like double paned windows, roof issues, and where ice might build up -- since we were looking in summer). When he did not feel comfortable in assuring us of specific properties like structural soundness and mold he was diligent in arranging for certified experts who we felt confident in. His only agenda was making sure were had no regrets about the home we bought.

Because he only had our interest at stake, we could confide in him as we developed a bargaining strategy without worrying about him leaking that information to the seller. We trusted him to carry out the details of the negotiations and information hunting.

This was our first home buying experience, and hiring an Exclusive Buyers Agent made it much easier than we expected.

We had to buy a house on a tight schedule because of prearranged travel out of the country. We went under contract the day before we left, and would be gone for the next two weeks. Our closing was scheduled just four weeks away.

Our EBA:

• assisted us in mortgage shopping
• arranged professional inspections the day we left,
• performed additional due diligence on our behalf
• hired an additional contractor to confirm mold had been abated, and
• arranged for an appraisal

...all while we were traveling.

Homebuyer Representation is tech-savvy. Our agent communicated and processed documents via the internet. He was flexible enough to communicate with us when we were many time zones apart. We were able to close on our dream house because we trusted him to handle the details while we were gone, and he came through! 

We knew he had no conflict of interest, and that gave us great peace of mind dealing with such an important issue while we were half way across the globe. 

Jeff & Bei
Research Scientists
Salt Lake City, UT

Have property values declined, not so much as to put you ridiculously upside-down, but enough that your current loan balance may no longer be less than 80% of the current value of your home? If you're in a position where you don't pay PMI now because you didn't need to pay it when you first took out your current loan, or because you didn't need it the last time you refinanced... perhaps you've felt that refinancing wouldn't benefit you, having heard that the cost of PMI has increased significantly over the past few years.

Many homeowners are unaware that both Fannie Mae and Freddie Mac have refinance programs available whereby if you have a conventional loan on which you were not required to pay PMI at its inception, you can refinance your loan at the current low rates and NOT pay PMI even if your current Loan-to-Value ratio is no longer less than 80%.

You do have to meet a few reasonable requirements to qualify.

Here is a preliminary test.

Y   N     Do you have a conventional loan?

Y   N     Did you have to pay PMI on your current loan when you got it?

Y   N     Do you currently owe more (on your first mortgage alone) than your home's current value?

Y   N     If you have a second mortgage, will your junior lienholder subordinate?

Y   N     Have you had any late payments on your existing mortgage in the past 12 months?

If you selected the answers I marked in bold, you likely qualify for a refi with no PMI (even if your current Loan to Value is > 80%!).

More details:

• If the existing loan (the loan being refinanced) does not have PMI, the new loan will not need PMI regardless of the LTV.
• The new loan can be used to pay off the existing 1st mortgage and cover closing costs, but the maximum cash back to the borrower is $250.
• Also, the maximum allowable LTV is 105%. (Meaning, if your property has declined so much that you are more than 5% upside down (considering the current value and the payoff of your first mortgage plus the closing costs if you wish to roll those in), you will not qualify.)
• New subordinate financing is not permitted. (You can leave the existing junior mortgage(s) in place if they agree to re-subordinate)
• There is no maximum CLTV (Combined Loan To Value (i.e. Total of all loans combined) or HTLTV (Total of loans and home equity lines combined). (In other words, so long as the first mortgage you are refinancing is less than 105% of the current market value, you will still qualify to refinance that first mortgage even if junior liens would take you over 105%!)
• Automated underwriting determines if an appraisal is needed. (The purpose of the appraisal is to determine if the new loan will be over 105% of the current value, NOT to determine whether or not you will have to pay PMI.)
• For credit scores, property types, occupancy types, high LTVs and subordinate financing, pricing adjustments apply, just as they do in regular purchase and refinance transactions.
• New loan can be a 30, 20 or 15 Year Fixed Rate or a 5/1, 7/1, or 10/1 ARM for true conforming loan amounts (loan amounts of $417,000 or less).  New loan can be a 30 or 15 Year Fixed Rate or a 5/1, 7/1, or 10/1 ARM for super conforming loan amounts.
• Available for all occupancy types (owner occupied, 2nd homes and investment properties)
• Available for all property types (1 - 4 unit properties).

I’ve done extensive research in home buying over the past few years.  I knew the only way to go was an EBA (Exclusive Buyer’s Agent), but I didn't know of any in Utah. 

Fortunately, a random internet search brought up Benjamin Clark with Homebuyer Representation.  I called him, and then met him in person.   He was easy to work with and has extensive knowledge of the home buying process.  He was always willing to take time to answer my questions and explain anything I didn’t understand.

I was purchasing a second home and Ben kept me on the right track throughout the entire process.  He overcame difficult communication issues—returning calls and emails quickly—and worked with people I assigned power-of-attorney.  Through the lengthy  process, he always kept my best interest at heart. 

Even though I was rarely in Utah, Ben kept me informed of every decision and the pros/cons of each home.  He never pressured me to make a decision; he gave me options, and then let me decide.  With his expertise and professionalism, I always felt secure that whatever Ben recommended was indeed the best choice.  

The home I finally purchased wasn’t the most expensive of those we searched through, but it was definitely the best deal.  I am thoroughly satisfied with the end result.  The next time I purchase a property in Utah, I guarantee I will ask for Ben’s assistance.  Bottom line: Benjamin Clark is a fantastic Buyer’s Agent; he is professional in every way.   I recommend Ben and Homebuyer Representation to anyone buying a home in Utah.

Lorrie
U.S. Army

Are you buying a home within 90 days? Get an agent on YOUR side! Hire an EBA!

• Do you have excellent credit?
• Do you plan to purchase a $300,000-$800,000 home within 90 days?
• Do you have a good down payment, or are you paying cash for your next home?

If so, hire a true advocate on YOUR side of the transaction! 

Call us at (801) 969-8989 or contact us via the link on this page.

©2011 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

For more information, or if you are relocating to another state, visit GetYourOwnAgent.com

At Homebuyer Representation we put our clients first. Our clients are always Buyers, all the time. 

• We do not represent Sellers ever.
• We don't "switch teams" in the middle of the transaction.
• Our focus is on what is best for the Buyer. We don't work to get the deal to go through if the client doesn't want it to go through or if it isn't in the Buyer's best interest for the transaction to close.
• We have no specific properties we need to "move" or "sell".
• We can help a Buyer purchase any property listed by any real estate brokerage, home-builder or even for-sale-by-owners.
• Our goal is the best outcome for the Buyer (price and terms)

Exclusive Buyer Agents truly are the Buyer's Advocates in the real estate transaction.

I recently was contacted by a "consumer advocacy group" that was looking for "discount EBAs". While their intentions may be good, their search won't be very fruitful and here's why:

1.   Simply hiring an EBA is in itself one of the single most effective ways for a Buyer to get a true advocate on their side. We firmly believe that having an agent on your side will yield a more favorable outcome than not. That, in and of itself suggests that Exclusive Buyer Representation is worth more than what a Buyer gets from discount brokerages, not less.

2.    The cheapest price is not always what is best for the consumer. We've all had horror stories of going with the cheapest option and realizing it wasn't even worth a fraction of what we paid for it. Just as with products, this holds true for homes, home inspectors, home builders, handymen, and yes, real estate agents.

3.   With regards to real estate representation, you get what you pay for. Or, let me say rather, you should get what you pay for.

In most transactions, what a Buyer THINKS they are paying for is:

• Someone on their side.
• Someone who will point out problems with a house, it's location, floor-plan or resale value.
• Someone who will advise the Buyer, but who allows them to remain in control of their home purchase transaction.
• Someone who won't show them hand-picked comparable sales that simply justify the Seller's overpriced home.
• Someone who will go to bat for them in negotiations with the skills and data to justify their offer.
• Someone who will remain true to them throughout the transaction and will continue to protect the Buyer when taking a transaction apart if that is in the Buyer's best interest, not keeping information from the Buyer in order to keep the sale moving along.

In other words, a Buyer wants to get what they pay for, which is, professional representation and advocacy.

4.   A true advocate on the Buyer's side will SAVE the Buyer more than the additional cost of their services whenever possible. These savings are not just financial. There are savings in wasted time, poor decisions, rookie mistakes, inexperienced negotiating, conflicts of interest, loss of representation, stress, frustration and potential legal issues.

Does a discount model have it's place? Certainly. When you are working with an agent who may have someone else's best interest in mind, may not remain loyal, or whose focus is on volume, you should expect a discount because you are probably NOT getting everything you think you are paying for.

Clients of Exclusive Buyer Agents (EBAs) know they get MORE than they pay for. So do many consumer advocates and consumer advocacy groups.

Buying a home within 90 days? Get what you are paying for! Get an EBA!

• Do you have excellent credit?
• Do you plan to purchase a $300,000-$800,000 home within 90 days?
• Do you have a good down payment, or are you paying cash for your next home?

If so, hire a true advocate on YOUR side of the transaction! 

Call us at (801) 969-8989 or contact us via the link on this page.

©2011 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

For more information, or if you are relocating to another state, visit GetYourOwnAgent.com

Well, I did it again! I decided to get the ABR designation for the second time. Yes, this means I took the entire curriculum over again, so you could say I'm twice as knowledgeable as those who have only earned the Accredited Buyer Representative designation once!

Okay, so maybe I didn't learn twice as much, but taking it from different instructors each time and a few years apart, I do have to say the course was a great reminder of how to property serve the real estate buyer and gave me some ideas on how I can make my buyer representation business even better!

Current designations I hold are:

• Accredited Buyer Representative, ABR
• Certified Exclusive Buyer Agent, CEBA
• Certified Negotiation Expert, CNE

Distinctions:

• Exclusive Buyer's Agent  (EBA)
• President, Homebuyer Representation, Inc.
• Member, National Association of Exclusive Buyer Agents (NAEBA)
• Past-President, National Association of Exclusive Buyer Agents (NAEBA)

Buyers:

• Do you have excellent credit?
• Do you plan to purchase a $300,000-$800,000 home within 90 days?
• Do you have a good down payment, or are you paying cash for your next home?

If so, get a trained agent on YOUR side of the transaction! Make sure you hire an EBA!

Call us at (801) 969-8989 or contact us via the link on this page.

©2011 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

Our MLS has a great way to handle short sale listings.

If a short sale is at the beginning of the process, it is listed as a Short Sale: Price Subject to 3rd Party Approval.

If a bank has officially approved a short sale purchase price, and for whatever reason, the buyer is no longer around, the listing can be categorized as Short Sale: Price Previously Approved.

This is genius and wonderful for clients who would like to attempt a Short Sale purchase, but who don't want the process to take months and months, or to be enticed by listing prices well below what the lender(s) will actually agree to only to find they wasted a bunch of time.

My experience has been that when a price has been previously approved, there is a greater *chance* that the sale of the property could go through in a 30-45 day period. I say chance because we all know there are things that can come up to start the process all over again.

The policy regarding short sale categorization has been that when listed as "Price Previously Approved" the list price should reflect the price that was previously approved. If the list price is NOT the price that has been previously approved, it should be listed as "Price subject to 3rd party approval", not "Price Previously Approved." This is true even if the bank has previously approved *some* price. If the price it is listed for sale at has not, in fact, been previously approved it should be listed as "Subject to 3rd party approval."

The policy states,

"If the lender has already approved the sale price the home is listed for, then the listing should be classified in the MLS as "Short Sale, price previously approved" ; and

If the listing price has NOT been pre-approved by the lender, the property should be listed as "Short Sale,price subject to 3rd party approval."

I'm finding that listing agents are attempting to game the system. They do so by listing homes at prices below the bank's approved price, but calling them "Price Previously Approved". Others haven't even submitted an offer to the bank and they say the price has been previously approved.

From 9 search results matching a downsizing client's search criteria for a small condo, 3 should not be classified as "Price Previously Approved", and 1 other is questionable. 1/3 of the homes should not be popping up in our list.

Here are the examples:

A. Listed at $122K. Actual Approved Price by the Bank: $130K (As stated in the remarks)
B. Listed at $125K. Actual Approved Price by the Bank: $135K (As stated in the remarks)
C. Listed at $120,000 as "Price Previously Approved", but remarks say "List price is what bank said to list for... Just need ANY offer to get going." These guys DON'T EVEN HAVE AN OFFER YET and they are listing it as "Price Previously Approved". Ridiculous.
And
D. Listed at $124,900 as "Price Previously Approved" but remarks say, "Verbally approved Short Sale" and "We need an offer"

It IS possible that this last one has actually had a buyer that failed and that the bank has verbally agreed to sell it at the listed price, but it's also possible that it is not. Who knows? I know a simple phone call can clarify, but it is just a further example of information that should be made more clear in the listing itself.

As an agent with a downsizing client looking for condos under $125K who does not want to go the full 4-6 months+ for short sales who haven't made it to "Price Previously Approved" status, I find it unprofessional and unethical for these listings to be popping up as HOTSHEETS for my client when they aren't really price approved in the price range we have set our cap for. I'm speechless that such blatant disregard for the rules is so prevalent and is allowed to continue.

I can't imagine that my 3-of-9 experience is just an anomaly. I have asked the MLS to inform infringing agents and brokers that they must correct such behavior immediately or be fined. And that because the infractions appear to be numerous and wide-spread, a broadcast message to the agents and brokerages at large would be appropriate.

That the MLS allows listings to be categorized as "Subject to 3rd Party Approval" and "Price Previously Approved" is a great thing. But it becomes a useless thing if unscrupulous agents and brokerages are allowed to list properties in such a way to *attempt to* gain an advantage based on misrepresentation. It also tarnishes our credibility and integrity with our clients and members of the public at large. It is perceived as shady and dishonest. And in my opinion, it is.

Buyers:

• Do you have excellent credit?
• Are you looking to purchase a $300,000-$800,000 home within 90 days?
• Are you making a substantial down payment or are you paying cash for your next home?

If so, don't buy a home without an agent on YOUR side of the transaction! Make sure you hire an Exclusive Buyer's Agent!

Make sure you hire an E.B.A.

Call us at (801) 969-8989 or contact us via the link on this page.

©2011 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

Many buyers ask their agents questions about what they think the market/seller/interest rates will do. It seems the prevailing attitude by many real estate agents is to laugh off such questions, or retort with a witty comment such as, "My crystal ball is on the fritz." Their response is more like that of the famous Magic 8-ball: "Reply hazy. Try again." And try again they do. Because they didn't hire a fortune teller to help them buy a home, they hired what they thought was a real estate professional.

Have we hit bottom? Should I wait to buy a home or buy now?

Buyers want to know about the market. Has it turned around? Is it still dropping? Well, I don't have a crystal ball, but I don't need one to give an honest response to their query.

Our market (Salt Lake City) is expected to continue in decline this year (2011). The rate of decline is slowing, but if they buy a home today, it will be worth less one year from now. We have not hit bottom. I tell all of my prospects this. Many still buy homes. Some wait. I don't have a problem with that. THIS is what they want to know. Not that I don't have a crystal ball.

For many people, waiting is a great idea! Unless the cost of renting is greater than the cost of buying, they can save a larger down payment and get a home in a year at a price below what they could buy a similar home for today.

Sure, interest rates could go up at any time, but the real estate agents and mortgage lenders have been using that line for the past 5 years. And buyers know this already. Every buyer needs to assess their long-term plans and determine if buying a home fits in with their plan. Responding to their question by telling them, "whether the market is in decline or on the rise is irrelevant if you plan on staying in the home for at least x years" is selling them, not educating them. Use a client's questions as an opportunity to educate them. My experience has been that educated buyers are easier to work with and make better decisions. They will buy when they are ready to buy and I'll be just as happy to help them buy in a year as I would be to help them buy today.

As a professional, you owe them a professional response. They may as well consult the Magic 8-ball if you are unwilling to give them a response based on facts and data. I'm a professional and when questions such as this are asked, it is my duty to respond professionally.

How much did the seller pay for the house?

If a client wants to know what the home last sold for and when, I'll tell them. Is it irrelevant? Perhaps. But I'm their agent, not a "salesperson". It takes only a short while for clients to realize what matters and what doesn't. Most people are not stupid. When I give them an answer or provide them with information they've requested, we can talk about whether it matters or not. I can ask them why they think it matters. Doing this gives me great insight in how to help them reach their goals.

How much equity does the seller have in the home?

There is nothing wrong with knowing how much equity a seller has in their house (positive or negative). I've seen upside down sellers bring tens of thousands of dollars to the closing table to sell and I've seen sellers with hundreds of thousands of dollars in equity in their properties not budge at all and NOT sell their home. No, what they owe does not change the market value, but getting an idea of the seller's apparent ablility to be flexible is helpful when developing a negotiations strategy, especially in this market.

Why are the sellers moving?

Why the sellers are moving is great information. It doesn't guarantee a level of motivation, but it can certainly be an indicator. If a client wants to know this, you should ask the listing agent. It's usually easier to get this information before entering negotiations, but a professional can usually get an answer to this question pretty easily, at any time. Is this irrelevant? Heck no! Why the seller is moving is highly relevant when determining a negotiations strategy. Ask the listing agent, ask the neighbors, google the sellers. Not only could this be relevant and very helpful, but it can be fun!

Should I lock my interest rate or not?

For me, this is the toughest of them all because when this question comes up, they are under contract on the home they want to own and there are many factors beyond any of our control that affect the interest rate. On this question, even I will state that I cannot see the future. But I owe it to the client to educate them as much as I can so they can make an educated decision. Based on my professional and personal experience, I'll tell them what I would consider when making this decision.

I try and put the current interest rate into context. How has the rate changed since they started looking at homes? If there is any current trend, I let them know. What difference does an eighth make in the payment? A quarter? Do they want to watch the market daily to try and get that extra 1/8th off the rate? Are they willing to, and can they afford to, take the risk that the rate goes up 1/8th or 1/4 percent? What economic indicators are on the horizon? How might those reports affect rates? What is the trend in the stock and bond markets? How far away is closing? If they are just a day or two away from being able to lock for a shorter lock period, that could offset some of the risk in waiting those few days. Rates tend to "drift" down and "shoot" up. This isn't meant to be an exhaustive list of considerations, but it is meant to show you how dumb saying you don't have a crystal ball and leaving it at that is. What help are you? You're no help at all and they wonder why they hired you.

Whatever information you can provide to your client on the subject they are asking you about, you should provide it. Your client wants to make as informed and as intelligent a decision as they can. Who are you to decide that floating the rate another 2 weeks is too risky? If they understand the risk and can afford to gamble, it should be their call. Who are you to decide that the fact that the seller has $100,000 in equity is irrelevant in determining a starting offer?

It is because none of us have "a crystal ball" that it's even more important to provide our clients with whatever we can that will best help them make informed and educated decisions.

Buyers:

• Do you have excellent credit?
• Are you looking to purchase a $300,000-$800,000 home within 90 days?
• Are you making a substantial down payment or are you paying cash for your next home?
• Do you want an agent who will actually ANSWER your questions and research them if necessary?

If so, don't buy a home without an agent on YOUR side of the transaction! Make sure you hire an Exclusive Buyer's Agent!

Make sure you hire an E.B.A.

Call us at (801) 969-8989 or contact us via the link on this page.

©2011 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved

You may have seen this already, but I thought it was something cool to share if you haven't.

An architect has turned his 300 sf Hong Kong apartment into 24 living spaces.

Is it a dream home? Probably not. But it's a cool home nevertheless.

Like interesting houses that employ eco-friendly or green designs?

See some of the World's Greenest Homes on discovery.com by clicking here.

Looking for your own new living space?

• Do you have excellent credit?
• Are you looking to purchase a $300,000-$800,000 home within 90 days?
• Are you making a substantial down payment (5% of the purchase price or more) or are you paying cash for your next home?

If so, don't buy a home without an agent on YOUR side of the transaction! Make sure you hire an Exclusive Buyer's Agent! (EBA)

Call us at (801) 969-8989 or contact us via the link on this page.

©2011 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM

Salt Lake City, UT - Exclusive Buyer Agents (EBA)

All Rights Reserved